ARTICLE
1 July 2025

Protecting Yourself From Property Scams

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IR Global

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IR Global is a multi-disciplinary professional services network that provides legal, accountancy and financial advice to both companies and individuals around the world. Our membership consists of the highest quality boutique and mid-sized firms who service the mid-market. Firms which are focused on partner led, personal service and have extensive cross border experience.
Keeping you and your money safe is our top priority, and we have stringent safeguarding measures in place to help protect all our customers. But there are also steps you need to take to protect yourself from fraud.
United Kingdom Real Estate and Construction

Keeping you and your money safe is our top priority, and we have stringent safeguarding measures in place to help protect all our customers. But there are also steps you need to take to protect yourself from fraud.

To help you identify potential scams and stay safe, we're publishing a series of articles on fraud protection. This article looks at how to protect yourself from property scams.

What is a property scam?

Property scams are a type of fraud where scammers deceive buyers into making payments for property deals that are misleading, overpriced or entirely fake. These scams often involve promises of high returns, exclusive investment opportunities or a dream home abroad. When purchasing a home overseas, criminals know that buyers are often unfamiliar with local laws, rely heavily on digital communication and are under pressure to make quick decisions. These factors create the perfect storm for fraud.

In many cases, the property either doesn't exist, is not actually for sale or is vastly misrepresented. Common types of property scams include: 

1. Payment interception and impersonation fraud

Payment interception, a type of impersonation fraud, is one of the most financially devastating scams. Criminals hack or spoof email accounts to pose as your lawyer, estate agent or seller. They often strike just before a payment is due, sending you fake bank details for the deposit or final balance.

In international deals, where funds often move across borders and currencies, this type of scam is particularly effective. Even a small change in account details can divert hundreds of thousands of pounds into the wrong hands, often irreversibly.

2. Fake property listings and non-existent homes

Some scammers list properties they don't own, or that don't exist at all, using stolen photos and convincing descriptions. These listings often appear on popular property portals or social media groups, especially in expat hotspots like Spain, Portugal, and France.

They typically ask for a deposit or an advance fee to 'secure' the home quickly, playing on the fear of missing out.

3. Title fraud and property identity theft

Title fraud involves criminals stealing the identity of the rightful property owner and attempting to sell or remortgage the home. Overseas buyers are attractive targets, especially if they own unoccupied or mortgage-free properties abroad.

If you're buying a house in a foreign country, and ownership is falsely claimed, you could lose your deposit, or worse, the entire purchase amount.

4. Fake buyer scams

This scam flips the usual narrative. Here, fraudsters pose as serious buyers (or intermediaries) and contact property owners or agents abroad.

Their goal might be to gather personal data, engage in identity theft or establish a longer con, such as impersonating you to another party.

5. Under-valuation and 'cash buyer' traps

Some international buyers are tempted by cash offers, especially if they promise fast completion.

But these 'buyers' may repeatedly delay the transaction, only to return with a much lower offer at the last minute, hoping desperation will win.

6. Rental scams targeting international tenants and landlords

Expats and international students are particularly vulnerable to these types of rental scams. Fraudsters post fake listings for desirable apartments, often in city centres, and ask for an upfront deposit before disappearing.

Some even go as far as organising fake video viewings or forging lease agreements.

For landlords, the scam can be reversed: fraudsters pose as tenants, provide false references or IDs, and then sublet illegally or disappear without paying rent.

An example of a property scam

Emma was searching for a holiday home in Spain when she came across a luxury beachfront apartment listed at a surprisingly low price on a property website.

The listing looked professional, and the agent was friendly, responsive and claimed the property was in high demand. To secure it, Emma was told she needed to transfer a €5,000 reservation fee immediately. Eager not to miss out, she made the payment. But after sending the money, the agent stopped replying to her calls and emails.

Emma later discovered that the apartment didn't belong to the 'seller' she had been in contact with, and wasn't even for sale!

Only then did Emma realise she had fallen victim to an international property scam.

Top tips to protect yourself from property scams

Scammers are masters of deception. Their communications may look professional, their stories may be plausible, and their timing, especially around payments, can seem perfectly legitimate.

But if you know what to watch for, you can often spot the red flags early.

1. Watch out for unexpected changes to bank details, especially if they occur shortly before the transaction is due to complete. This is a common tactic used to divert funds.

2. Be cautious of high-pressure tactics, such as claims that another buyer is about to pull out or that it's the last available unit. This is designed to make you act before you've had time to think.

3. Don't ignore unprofessional or inconsistent documentation, which might include mismatched names, poor formatting, or grainy scanned copies, all of which can indicate a lack of legitimacy.

4. Avoidance of direct communication, particularly if the seller or agent refuses to speak by phone or video call, is another red flag to watch out for. This is especially concerning when dealing with overseas contacts.

5. You may encounter emails that contain poor translation or overly generic language, even when the sender claims to be a local agent. These can be signs of mass-produced scam attempts.

6. Look out for suspicious banking information, such as a solicitor based in one country asking you to transfer funds to a bank account in another. This should always raise questions and is a common tactic used in payment diversion fraud.

7. Use secure payment platforms to protect your money. Fraudsters often target traditional payment methods, especially during property transactions, where large sums are involved.

To help protect buyers, we developed Redpin Payments, a secure, purpose-built platform designed to safeguard large cross-border transfers.

Redpin Payments includes features like automated identity verification, bank-grade encryption and real-time transaction tracking. These tools greatly reduce the need for unsecured communication channels and significantly lower the risk of fraud.

What to do if you're targeted by a property scam 

If you're in the middle of a transaction and something doesn't feel right, pause immediately. Taking a few extra minutes to verify a payment could save you thousands.

Here's what to do:

  1. Stop the transaction. If you're unsure about the bank details or receive last-minute changes, stop the payment and contact your solicitor or agent directly using a verified phone number.
  2. Verify identities. Confirm identities through trusted channels. Contact the solicitor, agent or client using a phone number you already have on file or one listed on their official website. Don't respond to the questionable email directly, as it could be spoofed or sent from a hacked account.
  3. Report the incident. Depending on your location, you should contact the appropriate authority. In the UK, it's Action Fraud. In the US, you can use the FBI's Internet Crime Complaint Center (IC3). For other countries, check your national cybercrime agency.
  4. Speak to your currency provider. If you're transferring large sums internationally, inform your provider immediately if something seems wrong. We may be able to pause or trace the transfer depending on the stage of the transaction.

More information on fraud prevention

Property scams are sadly becoming more common, with fraudsters using clever tricks to catch people off guard whether they're buying, selling or renting here in the UK and abroad.

Staying alert and well-informed is your best defence against these and other types of financial deception.

To better understand the range of scams out there and how to protect yourself, take a look at our selection of fraud prevention guides, which are designed to help you stay one step ahead.

If you've already been targeted by fraud, support is always available. Organisations such as Citizens Advice and Victim Support can offer practical help and guidance, empowering you to take action and avoid further losses.

If you're a Currencies Direct customer and something doesn't seem right, whether it's a suspicious message or unusual account activity, please get in touch with us straight away. Your safety is our top priority, and we're here to support you every step of the way.

There's plenty more to explore on this topic from a professional perspective. Redpin has two excellent articles worth reading:

These articles offer useful insights into how the industry is responding to fraud and what buyers and sellers can expect from reputable partners.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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